Geothermal investments are basically defined as investments made in companies engaged in the domain of geothermal energy. This does not simply include geothermal energy producers, but also installers, component suppliers, and system producers.
Paul Favret points out that geothermal energy has many upsides, which makes it attractive for investors. Paul is the Founder and Owner of Abundant Investments. He recently announced that the company has substantively liquidated all its Oil and Gas Investments, and is pivoting to more sustainable investment options like geothermal, solar, and wind.
Paul Favret sheds light on geothermal energy
Geothermal energy simply implies the heat energy from the Earth. Geothermal resources involve natural or manmade reservoirs of hot water that have varying temperatures and are found in depths below the Earth’s surface. Wells starting from a few feet to several miles deep can be drilled into underground reservoirs in order to tap steam and very hot water that can be brought to the surface for use in a number of applications, including heating and cooling, electricity generation, and more.
Apart from being essentially ultimate like many other renewable energy sources, geothermal energy is also always available. It is not impacted upon by whether it is night or day, like solar energy. Nor does it depend on the weather, climate, or season like wind and solar power. A geothermal power plant is likely to produce energy for around 8,600 hours a year on average. On the other hand, in solar plants, the average is around 2,000 hours per year. Hence, one can describe the rate of geothermal energy production to be constant, at least for the short or medium term. This makes geothermal energy more predictable and dependable than other options for renewable energy.
Unlike large expanses needed for wind turbines and photovoltaic panels, geothermal power plants require a comparatively modest amount of space. No matter whether it is meant to be a domestic system or a large-scale plant, most of the components of a geothermal power plant are buried underground, including its heat exchanges. There are very less components to be set up above the ground. At homes, the heat pump is likely to be about the size of a household appliance. On the other hand, in larger plants, the biggest components are the cooling towers, followed by turbines.
According to Paul Favret, geothermal stocks are the most common choice of private investors interested in investing in geothermal energy. Companies that create geothermal energy systems need to scale fast. For that to happen, they need capital. Hence, the shares of many of these companies are available in the stock market. Stocks basically are equity instruments, and owners of stocks actually own a small part of the respective company producing geothermal energy. Not only would the shareholders be eligible for dividend payments in many cases, but they will also directly profit from positive economic developments through increases in stock prices. Geothermal energy stocks, along with other renewable energy stocks are increasing in popularity with the growing awareness about leading a more sustainable lifestyle.